Global Stocks Set to Gain Modestly in Coming Months: Multibagger Poll
Investment managers and equity strategists are predicting a positive outlook for global stocks in the coming months, brushing aside recent market turmoil. The expectation is fueled by rising hopes of interest rate cuts by major central banks, which are expected to boost market performance.
The global MSCI index, which had plummeted about 9% from its all-time high in mid-July, has since recovered almost all its losses and is now up around 14% for the year. This recovery is attributed to the markets moving away from recession concerns, despite pricing in more interest rate cuts.
Economists are forecasting a gradual easing cycle, with no imminent shift in the steady growth of the global economy. Federal Reserve officials have hinted at potential rate cuts, but not at an aggressive pace.
The latest Multibagger poll of over 150 equity strategists, stock brokers, and portfolio managers indicates that most major equity indices are expected to gain further by year-end. However, with many bourses already trading at or near record highs, the forecast suggests single-digit gains for most indices.
While a global correction of 10% or more is not expected in the next three months, analysts are optimistic about corporate earnings outperforming expectations. This positive outlook is driven by factors such as potential rate cuts by the Fed, downward inflation, and a resilient macro-economic environment.
In conclusion, the overall sentiment in the financial markets is cautiously optimistic, with expectations of moderate gains in global stocks. Investors are advised to stay informed and monitor market developments to make informed decisions about their investments.